ADB provides loan to central China province to reduce flood risks

The Asian Development Bank (ADB) said on Monday it will provide a 200 million U.S. dollar loan to help reduce flood risks in central China's Hunan Province, which has been severely hit by typhoon-caused flood last week.

The project will help Hunan Provincial Government to implement its plan to improve flood control, forecasting and management in the mountainous river basins such as Lishui, Xianjiang, Yuanjiang, and Zishui, which are home to about 56.4 million people or 84 percent of the provincial population, said ADB.

Under the project, flood protection works will be conducted in 35 high priority areas out of 94 flood-prone cities. Non- structural measures are included to strengthen flood forecasting, enhance flood warning and emergency response systems, said ADB.

ADB's loan, which covers about 40 percent of the project's total estimated cost of 497.4 million U.S. dollars, comes from ADB 's ordinary capital resources.

It carries a 26-year term, including a grace period of six years, and an interest rate to be determined according to ADB's LIBOR-based loan facility.

The municipal and county governments of Hunan province will shoulder 295.2 million U.S. dollars of the balance, while the provincial government, the project's executing agency, will contribute 2.2 million U.S. dollars.

The project is due for completion in September 2012, said ADB.

Source: Xinhua